Bitwise: STRC Selloff May Signal Crypto Cycle Bottom
Bitwise argues the recent STRC selloff is a cycle indicator, not a sign that Strategy is in trouble.
If you've been watching crypto markets lately and feeling a little queasy, Bitwise Asset Management has some perspective that might settle your stomach. The firm is pushing back on the narrative that the selloff in STRC — the preferred stock tied to Michael Saylor's Strategy — is some kind of early warning that the whole Bitcoin-holding enterprise is about to crack under pressure.
Instead, Bitwise is framing the STRC weakness as something more like a market-cycle signal. In other words, when instruments like this start getting dumped, it can actually indicate that the broader crypto market is approaching a bottom rather than heading off a cliff. It's a contrarian read, but one that seasoned investors tend to appreciate — selling pressure in riskier, leveraged instruments often peaks right before sentiment turns around.
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Strategy, formerly known as MicroStrategy, has become something of a proxy bet on Bitcoin itself, holding an enormous stash of the cryptocurrency on its balance sheet. That makes its various securities — including STRC — sensitive to every twist and turn in crypto sentiment. When fear spikes, these instruments tend to absorb a disproportionate amount of selling, which can look alarming on the surface but may simply reflect the emotional exhaustion that historically precedes recoveries.
For everyday investors trying to make sense of all this, the takeaway from Bitwise is essentially: don't mistake turbulence in a leveraged, crypto-adjacent stock instrument for a fundamental collapse of the underlying thesis. Cycle bottoms are messy and uncomfortable by nature — that's kind of the whole point. Whether Bitwise turns out to be right depends heavily on where Bitcoin heads from here, and that's anyone's guess.
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